Electromagnetic waves transmitted through telephones is not ‘goods’ :
In Bharat Sanchar Nigam Ltd. v. UOI (2006) 3 SCC 1 = 152 135 = 3 STT 245 = 145 STC 91 = 282 ITR 273 = AIR 2006 SC 1383 = 3 VST 95 = 2 STR 161 (SC 3 member bench), it has been held that electromagnetic waves by which data is transmitted is not ‘goods’, since they can neither be abstracted nor are they consumed in the sense that they are not extinguished by their user. They are not delivered, stored or possessed. Nor are they marketable.
Transmission of voice or data by use of Artificially Created Light Energy is service and not goods – Transmission of voice or data by use of Artificially Created Light Energy is service and not goods. Vat will not be payable on this service – Bharti Airtel v. State of Karnataka (2011) 32 STT 483 = 13 96
= 44 VST 486 = 7 GST 265 (Karn HC DB).